Bitcoin extends sideways grind near $7,500
|- Bitcoin struggles to find direction after encountering support near $6,500.
- Technical indicators for BTC confirm netural outlook in near-term.
Bitcoin's (BTC) sharp drop at the end of November met strong support near $6,500 handle and allowed it to stage a modest recovery. However, BTC lost its recovery momentum before reaching the critical $8,000 handle and has been struggling to set its next short-term direction since then. As of writing, BTC was virtually unchanged on a daily basis at $7,500.
Technical outlook
Technical indicators for BTC confirm the biggest cryptocurrency's near-term neutral outlook. The Relative Strength Index (RSI) on the daily chart is moving sideways a little below the mid-point of 50 and a symmetrical triangle, which shows the market's indecisiveness, seems to be forming on the same chart. The only slightly-bullish sign is the fact that BTC closed the day above the 20-day moving average (MA) for the first time since in nearly a month on Friday. Nevertheless, it doesn't look like the pair is building up momentum for a new recovery rally.
On the downside, $7,450 (20-day MA) aligns as the initial support for the pair ahead of $7,080 (December low) and $6,500 (Nov. 25 low). Resistances, on the other hand, could be sen at $8,000 (Fibonacci 38.2% retracement of October 25- November 25 drop) ahead of $8,500 (Fibonacci 50% retracement of October 25- November 25 drop) and $8,750 (100-day MA).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.